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Enterprise Value Bridge

Calculate total firm valuation by bridging from Equity Value (Market Cap) through Net Debt.

JavaScript Required: This interactive calculator requires JavaScript to function. Below is the static mathematical framework.

Market Capitalization

Share Price ($)

Shares Outstanding (M)

The Bridge

Total Debt ($M)

Preferred Equity ($M)

Non-Controlling Interests ($M)

Cash & Cash Equivalents ($M) (Subtract)

Equity Value (Market Cap)

Net Debt

Enterprise Value

The Math

The Bridge Formula:

EV = Market Cap + Total Debt + Preferred + NCI - Cash

We add debt and preferred equity because they are senior claims on the business's assets that an acquirer would have to assume or pay off.

We subtract cash because it is a non-operating asset. If you buy a house for $1M but there is $100k sitting on the kitchen table that you get to keep, your true purchase price (Enterprise Value) was only $900k.